In wet clutch structures known in the prior art, means have been provided to eliminate the viscous drag which arises during clutch disengagement. This viscous drag is undesirable in that it will create unwanted driving input to the transmission input shaft or the output means from the clutch during disengagement. When a brake is used to hold the output shaft stationary, inefficiencies are created by the viscous drag due to the excess of lubricant and cooling fluid between the clutch plates while the brake is applied. The problems encountered in trying to prevent viscous drag are that complicated structures are normally involved which provide a release of the oil flow to the clutch either manually or automatically at a given time. The timing of this diversion of the lubricant and cooling flow is critical and must be in a proper relationship to the engagement of the clutch and the application of the brake. In addition, provision must be provided such that the oil will follow the diversion path rather than some of the oil continuing to flow to the clutch mechanism and create the viscous drag.